Swala Energy Limited has announced a Share Purchase Plan to raise up to A$5.0 million (US $4.4 million) to fund additional near-term work on the Company’s Tanzanian and Kenyan licences, as well as for business development and general administrative purposes.
The c(SPP) is to be offered to all eligible shareholders who can subscribing for up to A$15,000 of new fully paid ordinary shares in Swala without incurring brokerage.
The SPP issue price will be the lower of A$0.20 being a 4.8% discount to the volume-weighted average price of shares traded on the ASX over the 5 trading days up to and including 2 October 2014, or the VWAP of Swala shares traded on the ASX over the 5 trading days up to and including the day upon which the SPP Offer is scheduled to close, 10 November 2014.
Therefore,the maximum price that eligible shareholders will pay is A$0.20 (20 cents) per New Share.
The SPP Offer will open on Tuesday, 21 October 2014 and will remain open for subscription until Monday, 10 November 2014.
According to Swala Energy CEO Dr. David Mestres the funding will ensure that the company can carry on activities till the end of the first quarter of 2015 that include among others the drilling of three wells.
“Swala aims to raise up to A$5 million to ensure funding is in place for the Company’s activities to the end of the first quarter of 2015. The Company always expected to raise funds to carry it through its proposed three-well 2015 drilling campaign but has decided to now undertake a Share Purchase Plan to allow current eligible shareholders to participate,” said Dr Mestres.
Mestres adds that part of the preparation for this larger raise of equity was the interpretation of the results of the seismic data acquisition programmes over Block 12B in Kenya and the Pangani licence in Tanzania.
In the Kilombero licence in Tanzania the current additional 2D seismic survey is underway.
“These interpretations are currently ongoing and, in the case of the Kilosa-Kilombero basin, the interpretations will commence laterin 2014. In view of the Company’s current share price and the significant potential that its 2014 seismic survey is starting to reveal, the Board has felt strongly that the opportunity to participate in this earlier equity raise should be offered first to our existing eligible shareholders through a Share Purchase Plan, with the Directors retaining the right to place any shares not taken up by the existing eligible shareholders as they consider appropriate.” He concludes.
The share purchase plan is however applicable to equity holders whose registered address is in Australia or New Zealand.